Latin America News
LAST UPDATE: July 10, 2025
Canadian companies diversify trade during US tariff war but experts see limits
Canadian exporters have reduced reliance on US markets, with exports to the US falling from 78% to 68% over a year, while exports to the UK, EU, Australia, Indonesia, and Japan have grown; however, experts warn entrenched supply chains limit full decoupling .
Insight
Diversification efforts are notable but structural ties with the US remain strong; progress is valuable yet gradual, and Canada may pursue counter-tariffs if no resolution emerges by July 21.
Chile and Mexico brace for Trump copper tariff announcement
Officials in Chile and Mexico are preparing to pivot export strategies and seek alternative markets following Trump’s announcement of an impending 50% US tariff on copper .
Insight
The tariff threat highlights supply‑chain vulnerabilities and may push Latin American producers to diversify export destinations beyond China.
Mexico’s annual inflation eases in June, but core rate climbs
June’s headline inflation in Mexico eased slightly to 4.32% (from 4.42% in May), but core inflation rose to 4.24%, the highest since April last year; monthly increases were 0.28% (headline) and 0.39% (core) .
Insight
Persistent core inflation suggests underlying price pressures remain elevated, complicating Banxico’s efforts to reach its 3 ± 1% target; monetary tightening may continue.
Colombia Wages War on Cash With New Central Bank Payment Network
Colombia is launching a centralized payment network by its central bank (Bre-B), aiming to reduce reliance on cash despite 70% account-holding and 80% of transactions still in cash .
Insight
The shift indicates a significant push toward financial modernization. By improving digital payments, Colombia may increase financial inclusion and taxable transparency while reducing informal economy risks.
Barbados to be test case for first regional debt swap scheme
Barbados will pioneer a standardized “debt-for-resilience” swap, enabling high-interest bonds to be replaced by lower-interest ones backed by development bank guarantees; $2–3 bn expected across region, launch at COP30 in Nov 2025 .
Insight
If successful, the model could scale across vulnerable regions. By freeing funds for social, climate, and energy projects, it aligns fiscal sustainability with development goals.
